Pricing Criteria For Digital Marketing Agencies
In today’s competitive market, shopping around for any service is only natural, which is why the price varies from agency to agency for digital marketing services.
As time and experience allow an agency to perfect its operations and ensure all the marketing experts it employs are the best at what they do, having this experience will undoubtedly yield a higher price tag.
For example, TechWyse is proud to say that we are 20 years old, whereas some boutique agencies aren’t even 20 months old.
Company size also plays a factor in pricing. Office space, overhead, sub-contractors, etc., all play an important role in determining the price of a project. A two-person team in Flin Flon, Manitoba, will naturally charge less than a 100-person agency in Vancouver.
The complexity of the work is the most obvious determining factor of the price you can expect to pay. Building a website with complete marketing automation and email campaigns will cost a vastly different price than running a single paid media campaign.
You'll likely get fifteen different answers if you ask fifteen different SEO companies for a quote. Each company facilitates the service differently, and that ultimately affects the price. According to WebFx, there is a vast range of pricing for particular services, and this should be viewed before any negotiations.
Furthermore, the project turnaround time will be a major factor in determining the price. Rome wasn’t built in a day, but a Paid Media strategy can be built in less than 24 hours. This leads to different agencies' pricing models.
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Digital Marketing Pricing Models
There are four types of pricing models that you can expect to see when looking for a Digital Marketing Partner. Most will have project-based pricing, focusing on your business's Web Development aspects and building up your overall online presence.
Others, like our TechWyse Elite Packages, provide a customizable, hours-based approach that allows the Account and Project Managers to map out a quarterly strategy tailored to your business's needs.
TechWyse also has a monthly pricing model that depends on the service. An email marketing campaign targeting 10,000+ subscribers will typically drive a higher monthly cost than a Paid Media campaign with a $2,000 budget.
Cost of Services: SEO, PPC, SMM
The moving target of service-based pricing in digital marketing can be frustrating for people shopping around. A freelance social media producer can fetch anywhere from $25–$75/hour depending on the platforms, posts, copy, and content.
A solid baseline of $100/hour should be allocated to your marketing budget. Twenty hours of SEO may cost you around $2000/month.
This easy-to-calculate model will help negotiation. We calculate our cost based on keyword research, content development, backlink building, and more. These all play a factor in the price of SEO.
The same goes for Web Development projects. Custom website developments typically take 75–100 hours, so you can expect to pay around $7,000 to $10,000 for a custom website, depending on the complexity of the project, the content management platform, and the amount of copy needed on the page.
Paid Media is a little different. There are a few different platforms providing the opportunity to run advertising campaigns, including Google, Bing, Meta, Instagram, Reddit, and even Pinterest.
Keyword research, budget planning, copy, and creative development all contribute to the pricing of the project.
Video marketing is the most expensive cost or investment you will have to contend with. For one, the equipment, the expertise to operate the machinery, and the ability to edit the content can fetch you a very high price for professionally done work.
Typical video content developers can range anywhere from $150–$1,500 / hour.
The Cost of Success
In my opinion, the best digital marketing pricing model is a tailored, monthly-based package that suits your needs, like TechWyse Elite. The quarterly roadmap allows the business to utilize all of our services at a fixed rate.
TechWyse provides everything from strategy and consulting to measurement and tracking services. We believe that data-driven decisions are the most efficient way to get a return on investment for your business.
In terms of cost-effectiveness, comes down to the goals of the business and the current online presence you exude over the internet.
A mortgage company with 55 1-star reviews will have to endure a higher cost than a small clothing store just starting out and looking for a boost in online visibility. Overall, the right plan is what makes digital marketing cost-effective.
80% of TechWyse clients spend anywhere from $1500–$5000 per month on digital marketing services. With over 50 industries in our portfolio, you can be assured that we’ll develop the right strategy to bring you the fastest return on your investment.
When looking for a digital marketing partner, I always stress three things to look out for:
- Make sure there is some sort of measurement and tracking in place. If this is not in your contract, then a company can just hand you a one-page PDF with mundane results and marketing jargon while you just throw money away for lacklustre service.
- The length of the contract. SEO companies will typically ask for a 6–12 month commitment, and that’s fine because SEO is a marathon and not a sprint. But don’t get locked into a year-long agreement for email marketing or paid media services. Companies should be proving month-over-month that they are worthy of your business, and that’s what TechWyse does with our customers for all of our services.
- Outsourcing. A four-person agency is undoubtedly outsourcing its work to third-party vendors in other countries at a much cheaper rate. This leads to shoddy work, communication breakdowns, and typically underwhelming results.
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Key Questions to Ask
Some poignant questions you might want to ask a potential agency partner are the following:
What is your approach to understanding our business and target audience?
Reason: You want to ensure the agency is not using a one-size-fits-all approach. They should take the time to understand your industry, competitors, and specific audience to deliver tailored strategies.
Can you provide case studies or references from clients in our industry?
Reason: This helps verify their expertise in your specific niche. You want an agency with a proven track record of delivering successful campaigns for businesses like yours.
How do you stay updated with changes in digital marketing trends and technologies?
Reason: The digital marketing landscape is constantly evolving. An agency that actively keeps up with industry changes is more likely to implement the latest, most effective strategies for your business.
What communication and reporting processes do you have in place?
Reason: Clear communication and regular updates are crucial for a successful partnership. You want to know how often you’ll receive progress reports, the level of detail provided, and who your main point of contact will be.
How do you handle unexpected changes or crises during a campaign?
Reason: Campaigns can face unforeseen challenges, like algorithm updates or market shifts. It's important to understand how the agency manages setbacks and adjusts strategies to keep your goals on track.
If you want to learn more about TechWyse’s pricing and services, book a 20-minute strategy session with one of our Solutions Managers or give us a call at 866-208-3095.
